Real Estate Terms Dictionary
Assignment of Leases and Rents
Definition of "Assignment of Leases and Rents"
Sometimes called Assignment of Leases, Rents and Profits or simply Assignment of Rents, this is a document attached to a mortgage loan agreement which entitles the lender to any income
(from leases, rents, etc.) derived from the property once the owner defaults on the loan.
Find more information under Assignment of Rent.
Here's a real-life example from one of the properties researched on PropertyShark:
The Assignment of Leases and Rents, filed on the same day the property owner took out a second mortgage, functions as collateral (it guarantees that the property owner will pay back the loan on time). In this case, it entitles the lender to $398,000 from leases and rents in case the property owner defaults on the mortgage.
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.